Since each bitcoin will be valued higher with each passing day, the question of when to spend becomes important. This might cause spending surges which will cause the Bitcoin economy to fluctuate very rapidly, and unpredictably.

Yields on cryptocurrencies range from about 4% to 8% or more. This is significantly more than the yields on traditional savings accounts. This is because crypto banks cannot “produce money supply,” so they have to attract investors with high yields. The supply and demand for crypto financing drive the interest rates.